The government has announced plans to reduce the national funding rate for 16 to 18-year-old apprenticeships to be reduced by 2 percent over the coming year.

The plan to reduce the amount of funding comes as the level of youth unemployment continues to break records, with the number of unemployed 16 to 24-year-olds increasing to 52,000 during the three months prior to November 2011, hitting a peak of 1.04 million.

Paul Davis, managing director of Perspective, commented: “It is disappointing to see the government decreasing the funding for apprenticeships, especially after an under-spend of £15m during 2010/11. At a time when the rate of youth unemployment is continuing to rise, apprenticeships offer those without employment a great opportunity to increase their chances of finding work in this overcrowded jobs market.”

Despite recent figures revealing an increase in the number of available apprenticeships, this announcement appears to show the government isn’t as committed to creating new apprenticeships as previously thought. Gordon Marsden MP, shadow minister for FE, commented: “For all the government’s rhetoric on apprenticeships, they are still failing to create enough places for young people, while many smaller sized businesses feel unable to take part.”